Italy's Bank Chief Says Country Will Experience Recession In 2012
ROME (AP) — Italy's central bank chief is confirming that 2012 will be a "year of recession" for his country but says 2013 will see a "return to growth."
Bank of Italy governor Ignazio Visco also says Italian banks are "sound" even though the outlook for profit recovery for them this year is "not good."
The new central bank chief says in a speech in Parma, Italy, that in line with forecasts by the bank last month, Italy should see a 1.5 percent decline this year in gross domestic product. Visco predicts a "return to growth next year."
He said Saturday Italy's banking system, in terms of capital adequacy, is "extremely sound." Visco also says investor uncertainty about Italian government securities has "eased" but not yet disappeared.